Title CB2 BUSINESS ECONOMICS FINAL (03.03.2023).pdf ✅

0 CB2 BUSINESS ECONOMICS PAST EXAM QUESTIONS & SOLUTION
1 CB2- BUSINESS ECONOMICS SYLLABUS 1. Economic Models and Recent historical applications → 10% 2. Microeconomics → 45% → behaviour of consumer; firms, markets 3. Macroeconomics → 45%  relationship between govt, mkt, firms 100%  govt policies  international made Paper Pattern  26 MCQ of 1.5 marks each 39  Approximate 10 short answer questions (2-6 marks each) 41  2 long questions (10 each) 20 100 marks We take references from ‘Economics for Business’ by John Sloman, Dean Garatt, & Jon Guest. EXHAUSTIVE NOTES PREPARED BY CT7 ALL INDIA RANK 1 SHIVANGEE AGARWAL
2 INDEX CHAPTER NO. TOPIC PAGE NO. 1. Economic Concepts and Systems 1.1 What economist study 6 1.2 Different economic systems 13 2. Main Strands of Economic Thinking 17 3. Supply and Demand (1) 3.1 Demand 20 3.2 Supply 23 3.3 Price and output determination 26 4. Supply and Demand (2) 4.1 Price elasticity of demand (PED) 31 4.2 Other elasticities 40 4.3 The time dimension 43 4.4 The control of prices 49 4.5 Indirect taxes and subsidies 51 5. Background to Demand 5.1 The marginal utility theory 55 5.2 The timing of costs and benefits 59 5.3 Indifference Analysis 61 5.4 Demand under conditions of risk and uncertainty 69 5.5 Behavioural economics 74 6. Background to supply 6.1 The short run theory of production 79 6.2 Costs in the short run 83 6.3 The long run theory of production 87 6.4 Costs in the long run 91
3 6.5 Revenue 93 6.6 Profit maximisation 97 7. Perfect competition and Monopoly 7.1 Alternative market structures 102 7.2 Perfect competition 103 7.3 Monopoly 111 7.4 The theory of contestable markets 118 8. Monopolistic Competition and Oligopoly 8.1 Monopolistic competition 121 8.2 Oligopoly 125 8.3 Game theory 134 9. Pricing Strategies 9.1 Cost based pricing and limit pricing 139 9.2 Price discrimination 141 9.3 Multiple product pricing 145 9.4 Pricing and the product life cycle 146 10. Market Failure and Government Intervention 10.1 Efficiency under perfect competition 148 10.2 The case for government intervention 152 10.3 Forms of government intervention 160 10.4 Government failure and the case for the market 166 10.5 Competition policy 168 10.6 Policies towards research and development 171 11. The Macroeconomic Environment 11.1 An overview of key macroeconomic features 173 11.2 The circular flow of income 175 11.3 Measuring national income and output 177 11.4 The AD-AS model 180